F A C T S 



CONCERNI Mi 



TOGETHER WITH THE 


C H A R T E R 


or THE 


.H'.nnljiittaii dMinvt; .timing iL : onpni|, 


Organized December Tth, 1851, 


UNDER TIIE 


GENERAL INCORPORAT10N 


ACT OF CALIFORNIA. 




W. L. RPRROLGHs’ STEAM BOWER PRESSES, 1 IT I t LTON STREET. 


1852. 


CT^ 


























































- r 


FACTS 


CONCERNING 


QUARTZ AH 




ARTZ MININ 


TOGETHER WITH THE 


CHARTER 


OF THE 


ftlnnjjnttnn (£nmrt| lining (Rnragattg, 


4 * 


Organized December 7th, 1851, 


UNDER THE 


GENERAL INCORPORATION ACT OP CALIFORNIA. 


► 4 M 


Tfeto-RoHt: 

W. L. BURROUGHS’ STEAM POWER PRESSES, 113 FULTON STREET. 




1852. 


C73 
































50 

1 



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QiflWz WfiiOTjj 0olnopf)i]tj, 


Located in Grass Valley Township, Nevada County, California. 


Capital, - - - $150,000. Shares, - - - $100 each. 


JOHN A. COLLINS, President. 

HORACE GREELEY, Secretary and Treasurer. 


TRUSTEES : 

JOHN A. COLLINS, New York. 

HORACE GREELEY, “ “ 

HARRISON SCOTT, Grass Valley, California. 
WM. C. CROSETT, “ c - “ 

JOHN COOK, Jr., San Francisco. 


Note. —Dividends payable semi-annually, at Grass Valley and New 
York, on the first of March and September. Subscriptions to the 
Stock may be made on application to the President, at the Com¬ 
pany’s Office, No. 208 Broadway, (2d floor,) payable in cash at the 
time of subscribing. Letters must be post-paid. 








CHARTER 


We, whose names are hereunto annexed, to wit:— John 
A. Collins, Wm. C. Crosett, and Harrison Scott, of Grass 
Valley Township, Nevada County, State of California, and 
J. L. Crosett and John Cook, Jr., of the City and County 

of San Francisco and State aforesaid, have associated our- 

/ • 

selves together for the purpose, and with the object and 
intent, that said Company may become a body corporate, 
pursuant to, and by force of, the Statute of the Legislature 
of California, entitled “An Act Concerning Corporations,” 
passed April 22d, 1850, do hereby certify and declare— 

I. That the corporate name of said Company shall be 
“ The Manhattan Quartz Mining Company.” 

II. That the Capital Stock of said Company is One 
Hundred and Fifty Thousand Dollars. 

III. That the said stock consists of fifteen hundred shares 
at one hundred dollars each. 

IV. That the objects for which said Company is formed, 
are for Quartz Mining , and for extracting Gold from the 
Quartz Rock. 

V. That the said Company shall continue as long as the 
Stockholders may deem it profitable and expedient—not to 
exceed fifty years from the 7th day of December, 1851. 

VI. That the concerns of said Company shall be managed 
by five Trustees, to wit: —John A. Collins, Harrison Scott, 
Wm. C. Crosett, John Cook, Jr., and J. L. Crosett, to 
continue for one year from the 7th day of December, 1851. 



5 


VII. That the operations of said Company shall be in 
Nevada County, and one office shall be kept in Grass Valley 
Township—and also an office in any city or town in Cali¬ 
fornia, or in any other of the States of the American Union 
the Trustees may direct. 

In witness whereof, we have hereunto subscribed our 
names, in the township, county and state first above written, 
this 7th day of December, 1851. 

(Signed,) 

JOHN A. COLLINS, 
WM. C. CROSETT, 
HARRISON SCOTT, 

J. L. CROSETT, 

JOHN COOK, Jr. 


STATE OF CALIFORNIA, i 

COUNTY OF NEVADA, > SS. 

TOWNSHIP OF GRASS VALLEY. ) 

t 

On the ninth day of December, in the year of our Lord, 
one thousand eight hundred and fifty-one, before me, Thomas 
J. Burgess, an acting Justice of the Peace, for Grass Valley 
Township, personally came John A. Collins, Harrison Scott ? 
and Wm. C. Crosett, and known to me to be the persons 
described in, and who executed the foregoing instrument 
of writing, and who each acknowledged that he executed 
the same freely and voluntarily, for the uses and purposes 
therein mentioned. 

In testimony whereof, I have hereunto set my hand and 
private seal, (not having provided an official seal,) on the 
day and year last aforesaid. 

THOMAS J. BURGESS, 

Acting Justice of the Peace. 





6 


Personally appeared to me, a Notary Public for the 
County of San Franeiseo, John Cook, Jr. and J. L. Crosett, 
known to me to be the persons who executed the foregoing 
instrument of writing; and each acknowledged that he 
executed it for the purposes therein mentioned. 


December 13, 1851. 


JOHN COTTER, 

Notary Public. 





EXTRACT 

FROM THE “ACT CONCERNING CORPORATIONS” 

PASSED APRIL 22d, 1850. 

CHAPTER V. 

Companies for Manufacturing, Mining, Mechanical, or Chemical 

Purposes. 

§ 122. At any time hereafter, any three or more persons who 
may desire to form a company for the purpose of carrying on any 
kind of manufacturing, mining, mechanical, or chemical business, 
may make, sign, and acknowledge, before some officer competent 
to take the acknowledgment of deeds, and file in the office of the 
Clerk of the County in which the business of the company shall 
be carried on, and a duplicate thereof in the office of the Secreta¬ 
ry of State, a certificate in writing, in which shall be stated the 
corporate name of said company, and the objects for which the 
company shall be formed, the amount of the capital stock of said 
company, the time of its existence, not to exceed fifty years, the 
number of shares of which the said stock shall consist, the num¬ 
ber of trustees and their names, who shall manage the concerns 
of said company for the first year, and the names of the town and 
county in which the operations of the said company are to be 
carried on. 

§ 123. When the certificate shall have been filed as aforesaid, 
the persons who shall have signed and acknowledged the same, 
and their successors, shall be a body politic and corporate, in fact 
and in name, by the name stated in such certificate, and they shall, 
by their corporate name, be capable, in law, of purchasing, holding, 
and conveying any real and personal estate whatever, which may 
be necessary to enable the said company to carry on their opera¬ 
tions named in such certificate, but shall not mortgage the same nor 
give any lien thereon. 

§ 124. The stock, property, and concerns of such company 
shall be managed by not less than three nor more than nine trus¬ 
tees, who shall, respectively, be stockholders in such company, and 
citizens of the United States, and a majority of whom shall be 
citizens of this State, who shall, except the first year, be annually 
elected by the stockholders, at such time and place as shall be 
directed by the laws of the company: and public notice of the 
time and place of holding such election shall be published, not less 
than ten days previous thereto, in the newspaper printed nearest to 
the place where the operations of said company shall be carried 
on ; and the election shall be made by such of the stockholders as 
shall attend for that purpose, either in person or by proxy. All 
elections shall be by ballot, and each stockholder shall be entitled 



s 


to as many votes as he owns shares of stock in the said company, 
and the persons receiving the greatest number of votes shall be 
trustees; and when any vacancy shall happen among the trustees, 
by death, resignation, or otherwise, it shall be filled, for the remain¬ 
der of the year, in such manner as may be provided for by the by¬ 
laws of the said company. 

§ 125. In case it shall happen, at any time, that an election of 
trustees shall not be made on the day designated by the by-laws of 
said company, when it ought to have been made, the company, for 
that reason, shall not be dissolved; but it shall be lawful, on any 
other day, to hold an election for trustees, in such manner as shall 
be provided for by the said by-laws, and all acts of trustees shall 
be valid and binding against such company, until their successors 
shall be elected. 

§ 126. There shall be a President of the company, who shall be 
designated from the number of the trustees, and also such subordi¬ 
nate officers as the company, by its by-laws, may designate, who 
may be elected or appointed, and required to give such security 
for the faithful performance of the duties of their office, as the 
company, by its by-laws, may require. 

§ 128. The trustees of such company shall have power to 
make such prudential by-laws as they shall deem proper for the 
management and disposition of the stock and business affairs of 
such company, not inconsistent with the laws of this State, and 
prescribing the duties of officers, artificers, and servants that may 
be employed; for the appointment of all officers, and for carrying 
on all kinds of business within the objects and purposes of such 
company. 

§ 129. The stock of such company shall be deemed personal 
estate, and shall be transferable in such manner as shall be pre¬ 
scribed by the by-laws of the company; but no shares shall be 
transferable until all previous calls thereon shall have been fully 
paid in, or shall have been declared forfeited for the non-payment 
of calls thereon; and it shall not be lawful for such company to 
use any of their funds in the purchase of any stock in any other 
corporation. 

§ 134. Nothing but money shall be considered as payment of 
any part of the capital stock, and no loan of money shall be made 
by any such company to any stockholder therein; and if any 
such loan shall be made to a stockholder, the officers who shall 
make, or who shall assent thereto, shall be jointly and severally 
liable to the extent of such loan, and interest, for all the debts of 
the company contracted before the repayment of the sum so 
loaned. 

§ 140. Whenever any company shall desire to call a meeting 
of the stockholders, for increasing or diminishing the amount of 
capital stock, or for extending or changing its business, it shall be 
the duty of the trustees to publish a notice, signed by at least a 
majority of them, in a newspaper in this county, if any shall be 



9 


published therein, at least three successive weeks, and to deposit a 
written or printed copy thereof in the post-office, addressed to each 
stockholder, at his usual place of residence, at least three weeks 
previous to the day fixed upon for holding such meeting, specifying 
the object of the meeting, the time and place when and where such 
meeting shall be held, and the amount to which it shall be proposed 
to increase or diminish the capital, and the business to which the 
company would be extended or changed; and a vote of at least two- 
thirds of all the shares of stock shall be necessary to an increase or 
diminution of the amount of its capital stock, or the extension or 
change of its business as aforesaid. 

GENERAL PROVISIONS. 

CHAPTER I. 

§ 1. Every corporation, as such, has power: 1. To have suc¬ 
cession by its corporate name, for the period limited, and when no 
period is limited, perpetually. 2. To sue and be sued in any Court. 
3. To make and use a common seal, and alter the same at 
pleasure. 4. To hold, purchase, and convey such real and personal 
estate as the purposes of the corporation shall require, not exceed¬ 
ing the amount limited by law. 5. To appoint such subordinate 
officers and agents as the business of the corporation shall re¬ 
quire, and to allow them a suitable compensation. 6. To make 
by-laws, not inconsistent with any existing law, for the manage¬ 
ment of its property, the regulation of its affairs, and for the transfer 
of its stock. 

§ 2. In addition to the powers enumerated in the preceding sec¬ 
tion, and to those expressly given in the chapter of this Act, under 
which it shall be incorporated, no corporation shall possess or exer¬ 
cise any corporate powers, except such as shall be necessary to the 
exercise of the powers so enumerated and given. 

§ 3. Mo corporation created, or to be created, shall, by any 
implication or construction, be deemed to possess the power of dis¬ 
counting bills, notes, or other evidences of debt, of receiving de¬ 
posits, of buying gold or silver, bullion or foreign coin ; of buying 
and selling bills of exchange, or of issuing bills, notes, or other 
evidences of debt,, upon loans, or for circulation as money. 

§ 7. All corporations may, by their by-laws, where no other 
provision is especially made, determine the manner of calling and 
conducting their meetings, the number of members that shall 
constitute a quorum, the number of shares that shall entitle the 
members respectively to one or more votes, the mode of voting 
by proxy, the mode of selling shares for the non-payment of as¬ 
sessments, and the tenure of office of the several officers; and 
they may prescribe suitable penalties for the violation of their by¬ 
laws, not exceeding, in any case, one hundred dollars for any one 
offence. 

§ 12. Whenever the capital stock of any corporation is divided 
into shares, and certificates thereof are issued, such shares may be 



transferred by endorsement and delivery of the certificates thereof, 
such endorsement being by the signature of the proprietor or his 
attorney, or legal representative; but such transfer shall not be 
valid, except between the parties thereto, until the same shall have 
been so entered on the books of the corporation as to show the 
names of the parties by and to whom transferred, the number and 
designation of the shares, and the date of the transfer. 





THE COMPANY’S QUARTZ VEINS, &c. 


The fundamental basis for the operations of the “ Manhattan 
Quartz Mining Company” will be found in the preceding pages. 

The principal “ claims” of the company are upon “ Manhattan” 
and “ Willow Hills;” it has also valuable possessions upon “Gold,” 
“ St. Lawrence,” “ Laurel,” “ Chesnut,” and “ Osburn Hills,”—a 
total of sixty-four lots, twenty-six of which are one hundred feet 
upon the vein, with its depths and angles. 

With most of the trustees of this company, quartz mining is no 
theory. The president was one of the pioneers in practical quartz 
mining, and manager of one of the most successful quartz mills in 
California. Wm. C. Crosett, well known in Boston, and a success¬ 
ful merchant in San Francisco, has been engaged in it the past year, 
and is now superintendent of the works of the Grass Valley Quartz 
Mining Corppany. Harrison Scott is well known in Cincinnati as 
a pork merchant, and has been successfully prosecuting quartz 
operations for nearly two years. In a letter from Grass Valley to 
a friend, in the early part of 1850, he says :— 

“ I am confident that quartz mills would pay well. By hand 
mortars, even hundreds of dollars not unfrequently can be obtained 
daily. I have been quite successful, and Mr. Hough has acquired 
a fortune by raising rock and pounding out the specimens by hand. 
All the hills are ribbed with quartz, which is, without doubt, rich in 
specimens.” 

Messrs. Crosett & Scott are now both at Grass Valley to look 
after the interests of this company. John Cook, Jr., another of 
the directors, has been, and now is, largely engaged in the whale 
fishery—a large flour operator in San Francisco—has travelled ex¬ 
tensively over the mining regions, and been long engaged in quartz 
mining. Horace Greeley, the other trustee and treasurer, is no 
stranger to the public, and remark is unnecessary.” 

The stock of the company has been fixed at an amount that 
will justify the trustees in putting on the best and most efficient 
machinery that is now employed, and that will be competent to 
crush one hundred tons every twenty-four hours. 


12 


The machinery will be similar to that employed by the Grass 
Valley Quartz Mining Company, formerly owned by John A. Col¬ 
lins & Co. This style of machinery has been thoroughly and suc¬ 
cessfully tested. It will accomplish the same amount of labor with 
the employment of half less power than any other style of ma¬ 
chinery that has come under our observation. 

The following statement from Wm. H. Willets, engineer, and for¬ 
merly of Skaneateles, N. Y., and known to be a man of unimpeach¬ 
able integrity, while it introduces subjects that would properly come 
under other heads, shows the superiority of this style of machinery: 

Grass Valley, Dec. 7th, 1851. 

J. L. Crosett, Esq.:—Dear Sir,—-You ask my opinion of the 
Grass Valley Quartz Mining Co. Mill, Claims, &c., formerly known 
as J. A. Collins & Co/s Model Mill. I have had charge of the 
mill, as engineer, since the mill was started, (some six months,) 
and can confidently say this mill is capable ol crushing more rock 
than any mill in the Valley. This mill has ten stamps, but owing 
to their size, and the peculiar construction of its batteries, will crush 
more rocks with one-third less hands, and half the power, than 
other mills in this town, that have eighteen stamps. Our average 
run for several weeks past has been four tons per day, (of twenty- 
four hours,) per stamp. But this has been rock that crushes easier 
than the average yield of the mines. Still I have no hesitation in 
saying we can crush thirty tons per day, with the rock properly 
prepared, from any vein in this vicinity. The company have ex¬ 
tensive claims on Daisey and Osborne Hills. We have been 
crushing from these hills during the past five or six weeks, and 
the average yield from the former has been about one hundred 
dollars per ton, from the latter about sixty. The best yield we 
have had during this time has been two hundred and forty ounces, 
taken out of the amalgamators from four stamps, besides some two 
or three hundred dollars taken out of the batteries, and from the 
tables, before it reached the amalgamators. This would be five 
and a half pounds of amalgam per stamp, which would yield one 
hundred dollars per pound of pure gold. The rock from these 
hills is mostly the rose quartz, which crushes, as I was saying be¬ 
fore, easier than the average, owing to there being but little crys- 
talised quartz mixed with it. WM. H. WILLETS. 

I have been running with Mr. Willets, as engineer, some two 
months, and fully concur in the above. 

MOSES L. REMENTON. 

The Nevada Journal, under date of November 8th, 1851, speaks 
of this mill as follows:— 

“ A Model Quartz Mill. —In company with Dr. Trask, a few 
days since, we made a rapid geological tour in the direction of 



13 


Grass Valley, to rub up old notions of geology, and obtain new 
ones, from our scientific companion. The keen eye of the expe¬ 
rienced geologist pointed out the granite running into slate, the 
slate into sienite, that into copper-bearing quartz, then talc, then 
granite again—finally giving place to the rich quartz apparently 
almost underlaying Grass Valley, and ribbing all its hills. We 
visited every mill in the place, gathered statistics and specimens 
showing the average yield of the various veins, and comparing the 
various modes of operation. In one of these mills we observed an 
improvement over the usual process, at once simple and effective, 
which proprietors would do well to copy. We refer to the stamps 
and mortars connected with the mill of Messrs. John A. Collins & 
Co. This mill with ten stamps will crush thirty tons in twenty- 
four hours, and these stamps have been in use some four months, 
and yet the wear in them is almost imperceptible. On examining 
the construction of the stamps and mortars we were not surprised 
at this result. The stamps are very large, 14 by 8 inches on the 
face. The mortars in which these stamps play are twenty-four 
inches wide. The advantage of this is, the quartz, instead of pack¬ 
ing down in a solid mass, as it will in a confined mortar, has plenty 
of room to fly about; the fine is ejected through the seive, and the 
coarse is constantly falling under the stamps. Take a handful of 
salt and put it in a hand mortar and pound it with a pestle of the 
size of the mortar, and it will crowd down in a solid mass, and at 
the bottom the lumps will be as coarse after an hour’s pounding as 
when they were put in ; whereas, if the mortar is roomy, the salt is 
in constant motion, and soon pulverizes. This is the philosophy of 
these roomy mortars and wide stamps, and it is obvious, as well as 
decided by experiment, that the wear on the stamp must be less 
when a large face strikes fairly on the quartz, and the grinding from 
the sides is removed. A set of stamps on the usual pattern are used 
up in a few months, and if those erecting mills will but observe the 
sinfple philosophical principle applied by the company we have 
named, they will not only be able to do immensely more work with 
the same number of stamps, but save a large item of expense incur¬ 
red by the frequent renewal of their stamps. 

“ We were out at a very rich lead belonging to this company, 
on Daisey Hill. This is a peculiar kind of quartz, is of a light 
bluish cast, and has the appearance of immatureness, or unripe¬ 
ness. It is semi-transparent before it is exposed to the atmosphere, 
contains much water, has but few crystals of any size, but there are 
numerous small cavities where minute crystals appear at this time 
to be in a state of formation. This quartz is very rich in gold. It 
has never yielded less than $100 per ton by the mill operation, and 
when the specimens have been pounded up by a hand mortar it has 
yielded as high as $250 a ton.” 


14 


The California Express , under date of November 12th, 1851, 
speaking of this mill, remarks :— 

“ Quartz mining is on the increase. The quartz is quite exten¬ 
sive, and some of it is very rich. Gold Hill still retains its credit. 
Its rock is both abundant and rich; a comparatively small amount 
of labor has enriched many. The extent of its hidden treasures 
cannot be easily measured. To draw the rich treasures from its 
depths requires more capital, labor, and enterprise, than formerly. 
Companies must now do what individuals cannot easily accomplish. 

“ There are now eight quartz mills running night and day. There 
are seven more in process of erection, some of which will be com¬ 
pleted in a very short period. Among the most efficient mills now 
running are those of Legrave & Co., John A. Collins & Co., and 
Mr. Walsh. The first runs 18 stamps and the last two 10 each. 
The stamps of the first are only six inches square on the face, and 
those of Collins & Co. are eight and fourteen inches—more than 
three times as large, and their mortars are correspondingly large. 
The consequence is, this mill will crush considerably more than 
any other in this valley.” 

James Delevan, secretary of a company that is constructing a 

/ 

large mill in Grass Valley, writes:— 

“ This mill and veins (Collins & Co/s) have an excellent repu¬ 
tation in this community. I regard it one of the best and most 
efficient in this section. There is no rock superior to that quarried 
by this company from “ Daisey” and other “ hills.” 

Mr. Elder, a merchant in Grass Valley, and long a successful 
quartz miner, in speaking of this mill, under date of December 9th, 
1851, writes:— 

“ Its capacity to crush quartz rock, in proportion to the power 
of machinery, and the expense of mining, 1 believe to be as great, 
or greater, than any other mill with which I am acquainted.” * 

Capt. E. Wilson, long engaged in mining, in speaking of this 
mill, writes to J. L. Crosett:— 

“ I have examined most of the quartz mills in this part of the 
country, and upon examining yours, have no hesitation in saying that 
I believe it one of the most efficient for reducing rock and saving 
gold , in operation. This I believe is the opinion of every judge 
working in the Valley.” 

The directors will spare no expense in procuring and putting up 
the machinery. They hope to have it ready to put on board a 
clipper ship by the 1st of April, or the 15th at fartherest. The 
foundation will be laid, the buildings put up, and all the \vood work 
got in readiness and upon the ground, that no unnecessary delays 
may be occasioned in putting up the machinery upon its arrival in 
California. 




VARIOUS ESTIMATES 

Of the yield of gold bearing quartz have been made by different 
individuals and companies, some of which are so large as to stagger 
belief. All of these statements may be, and no doubt are, theo¬ 
retically correct, but it is unsafe to predicate the income from the 
operations of a company, on the amount of gold which quartz will 
yield by chemical or fire test. Some parties have put up machinery 
with the expectation of realizing fifty cents to the pound, or 
$1,000 a ton. Those individuals, no doubt, will be doomed to 
grievous disappointment. 


One company bases its operations upon the following estimate : 

EXPENSES. 

One hundred tons at 20 cents per lb. is $40,000. 

Cost of quarrying, say at $10 per ton, . . $1,000 00 

2 Engineers, at $10 each per day, . . . 20 00 

2 Firemen, 5 “ .... 10 00 

16 Feeders, 5 80 00 

5 Mill hands, 5 “ .... 25 00 

1 Superintendent,. 20 00 

1 Amalgamator, . ..10 00 

1 Millwright,. 10 00 

1 Blacksmith,.10 00 

8 Cords wood, at $5, 40 00 

Iron, oil, nails, for repairs, &c., . . . . 10 00 


Total expenses* .... $1,235 00. 


Which shows the enormous profit of $38,765 per day ! or $11,639,- 
500 a year of 300 days. 

This estimate we wish no man to credit, notwithstanding it may 
be correct. - • 

A writer in the Alta Californian , makes the following estimate 
upon fifteen tons a day, at a yield of two cents to the pound:— 

“Suppose an establishment working an engine of forty-horse 
power, and driving thirty stampers, will cost $70,000, an exag¬ 
gerated value. Suppose the thirty stampers crushed, in twenty- 
four hours, twelve tons, an amount much underrated. The number 
of hands necessary for the above work is twenty, at five dollars 


per day, without board, . . . $100 

One engineer, at . . . 10 

One assistant engineer, ... 8 

One blacksmith, .... 5 

One carpenter, .... 5 

Six laborers, for various work, at $4 per day, 24 

Director, . . . . .16 

His assistant, . . . . 10 


Total expenses per diem., 


$178 




16 


“ Suppose the ore yields only two cents to the pound, or 640 per 
ton, fifteen tons will give 6600. At this rate the product per 
month (twenty-six working days,) would give 615,000 

Expenses for labor per month, (30 days,) 5,340 

Balance in favor of the mine, 610,250 

Being abundantly sufficient to allow for wear and tear, particularly 
when we consider that an engine, properly managed, may last six 
years, and the stampers six months. 

“ Now let us see the figures when the mine yields five cents to the 
pound, a yield which can be with justice considered an average 
product of the California mines. 

“ Without changing the amount of expenses above presented, we 
will have, as a result of the same mining operations, at the rate of 
6100 per ton, or five cents per pound, per diem, 61,560, or per 
month, 630,000. The original monthly expenses, as above showm, 
65,340, leave us a net balance of 633,660.” 

“ The above facts, says Gen. Winchester, are based upon the 
labor of a company now in operation, can be relied upon, and proven, 
if necessary” 

A writer in the California Courier, in speaking of the mode of 
working quartz rocks, and the machinery employed, says :— 


“ This leads me to the point I had in mind, when I spoke of the 
probable failure to succeed, of many companies, which, without 
experience or knowledge of quartz, or of the mode of operation, 
have rushed blindly into the business ; and that is, that the failure 
of such companies to succeed, would be no evidence of the imprac¬ 
ticability of quartz mining. Extensive veins of auriferous quartz, 
accessible to water, and easily quarried, with machinery like that 
of Mr. Walsh, or of Messrs. John A. Collins & Co., adequate to 
the crushing of 100 tons in 24 hours, would be one of the best 
investments of money that could be made. I will here introduce 
some figures, and such as any man, at all acquainted with the 
business, will admit to be an approximation to correctness, as the 
probable expense of raising and crushing 100 tons in 24 hours. 
This would require a force of— 

150 miners, at 65 a day, .... 6750 

10 teams and drivers, at 610, - - - - 100 

2 engineers, at 610, - - - - - 20 

2 firemen, at 65, ... - . - 10 

16 feeders, at 65, - - - - 80 

5 choppers, at 66, - - - - 30 

1 blacksmith and macliinist, - - - - 10 

1 millwright, ... . . . 10 

5 men about the mill, at 65, 25 

1 amalgamator, - - . - . 10 


61,045 









17 


Brought forward ..... $1 3 045 

1 sub-superintendent, 10 

1 superintendent, ----- 20 

Nails, iron, lumber, &c., - - - - 10 

Incidentals, ... . . . 15 


Making a total of $1100 

Now, 100 tons of quartz, at $20 a ton, amounts to, 2000 
Expenses, 1100 


$900 

“ This leaves a profit of $900. If there be an error in the allow¬ 
ance for expenses, it is very probable an over estimate. The mills 
now receive from $20 to $30 a ton for crushing. Hence, quartz 
that will but pay from $36 to $40 a ton, is considered only as paying 
a fair profit upon labor invested. It will be thus seen that poorer 
veins cannot be profitably worked.” 

From these various estimates, we prefer to base our calculations 
upon the latter, but the reader can form equally with ourselves, some 
idea of the probable results of quartz mining. The last of the 
above statements may be regarded as exempt from extravagance, 
and yet the results for one year, upon this estimate, is enormously 
large. The estimated cost of quarrying and reducing the rock was 
based on the old clumsy method of mining, and is above what the 
present high wages even will justify, by some $200 a day. This 
estimate, at one cent per pound or $20 per ton, it should be kept in 
mind is vastly below the general average obtained by different quartz 
miners. Every addition of one mill per pound increases the profits 
$200 a day, and should the yield be 2 cents per pound, the addi- 
ditional nett profits by this estimate, will be $2000 per day or 
$600,000 per year of 300 days. But it is useless to pursue these 
speculations farther than to remark, that, by the improvement in 
machinery, and the employment of labor-saving forces, the ore 
can be quarried and reduced fifty per cent less than eight months 
since. 


THE TAILINGS, OR PULVERIZED QUARTZ, 

After it has passed through the amalgamators, and all the gold 
saved of which the present improved process is capable, contains 
considerable of the precious metal—the difference, for illustration, 
2 







18 


between the amount saved, 3 cents a pound; the amount indicated 
by the original assay, seven cents a pound—(four cents)—is con¬ 
tained in the tailing or residuum. These will not be lost, but piled 
up for assaying when a practical process is discovered competent 
to its reduction. 


GRASS VALLEY QUARTZ. 

As the operations of the Company is located in Grass Valley, 
it may not be out of place, to give the reader an approximate idea 
of the general average of the quartz rock in this particular 
region. In soliciting testimony upon this point, we shall summon 
upon the stand as witnesses, a few from the many who are, or 
have been, practically engaged in quartz mining in this place. 
The president of thi» company, from long experience, is of the 
opinion that the great mass of this quartz will average by the 
present mill operation, two cents to the pound, or $40 a ton. The 
quartz crushed at the mill of the Grass Valley Quartz Mining Co., 
formerly John A. Collins & Co., has ranged from 1 to 8 cents a 
pound, or from $20 to $160 a ton. At this mill, the average 
yield, has been about 3| cents to the pound, or $70 a ton. Most 
of this rock, however, was from “ Daisey,” “ Gold,” and “ Osburn 
Hills,” among the richest veins now worked. 

Hon. James Walsh, Senator from Neveda County, and proprietor 
of a large quartz mill, in writing upon this subject, says— 

“ The rock (from which all the richest portions have been culled) 
has paid as low as $20 per ton, and as high as $120 per ton. The 
quartz is paying better now than at first. The mode of saving gold 
has been improved, and there is yet room for improvement. I 
think the average of the quartz in this vicinity will be found to be 
about $40 per ton.” 

Judge Walsh, July 18, 1851, referring to the quartz of Grass 
Vally, remarks:— 

“ The rock on that (Gold) Hill, after taking out specimens 
enough to pay for working the hill, and excavating the rock, 
will, beyond doubt, pay an assay of five cents per pound. The 
quantity of gold bearing quartz in this (Grass Valley) district, 
it is impossible for any one to estimate.** Even with high labor, 
imperfect modes of quarrying, and very inefficient machinery, the 
mills are making money.” 

James Hough, a heavy quartz operator, writing on this subject, 
under date of July 25, 1851, says:— 

“ Up to the present time I have quarried some fourteen hundred 



19 


tons of rock—have had in my employ from eight to twelve men, 
daily, and have more than paid my entire expenses by crushing 
with a hand mortar the richest portions of the rock, paying wages 
at the rate of four dollars per day with board. By this hand 
operation I have crushed quartz yielding as high as eighty-six dollars 
to the pound, and little, if any, less than three dollars.” 

“ After these ‘ specimens ’ have been carefully culled from the 
whole mass of the rdck by breaking it up into small pieces, the 
smallest yield of the remainder, when crushed and amalgamated at 
the mill, has been $30 per ton, and the largest that has come 
under my observation as high as $140. In my opinion $70 would 
be a fair average of each ton of rock. But it should not be for¬ 
gotten that the business is yet in its infancy among us—that the 
machinery is very imperfect, and that with such improvements as 
daily experience is suggesting, these figures would be materially 
improved.” 

The San Francisco Evening Picu^'ne, under date of January 
20 th, writing upon this subject, says :— 

“ No doubt remains now in the minds of those acquainted with 
the subject, that the gold bearing quartz will average from two to 
three cents value of gold to the pound of natural quartz, and when 
the proper machinery and mode of working it are hit upon, it will 
prove a great and flourishing interest in California.” 

Prof. Blake, a man of science, and thoroughly acquainted with 
this subject, writes:— 

“ The richest veins of quartz that have yet been worked to any 
extent, are those of Carson Creek, and Grass Valley, Nevada 
County.*** In Grass Valley, very rich quartz has been found. In 
many specimens that I have seen, the quartz might have been said 
to have been literally imbedded in the gold, rather than the gold in 
the quartz.***** There can be no doubt, also, that quartz, in 
which no gold is visible to the naked eye, often contains a con¬ 
siderable portion, I have (continued the Prof.,) analyzed rock, in 
which a careful examination could not detect a particle of gold, 
but which has yielded as high as twelve cents to the pound.” 

Dr. Finley, an intelligent gentleman, who is largely engaged in 
quartz mining in Grass Valley, and at Auburn, says that he has 
extracted 80 cents to the pound from quartz, which, to the eye, did 
not present a particle of gold. 

Sir Henry V. Huntly, R. N., an English gentleman, who has 
devoted much time and attention to quartz examination in Cali¬ 
fornia, in writing to Gen. Winchester, upon the character of the 
Grass Valley Quartz, under date of August 4th, 1851, says:— 

“ 1st. I shall state that I have tried quartz from a variety of these 
veins, and but in two instances only , found no gold. 


rv «— • 



I 


20 

“ 2d. In quartz that no outward appearance, and which was 
carefully examined with a strong magnifying power, no gold what¬ 
ever could be detected, but through which a stratum of iron pyrites 
ran, varying in breadth from a hair to the eighth of an inch, the 
stone highly crystalized, I found in five pounds, six grains and two 
thirds of a grain of gold. 

“ 3d. In two pounds of stone of an opaque yellowish color, I got 
more than five dollars ; and from Jive ounces of stone, much decom¬ 
posed, coated and impregnated with oxide of iron, I got something 
more than one dollar and a half. 

“ 4th. All this was from quartz veins opened near Nevada and 
Grass Valley. 

“ 5th. Generally speaking, I think, among the veins of quartz, it 
will be found that, although some may be found exhibiting extra¬ 
ordinary richness, yet the average product will range from three to 
seven cents per pound of ore 

The Rev. R. T. Huddart, of this City, and long a resident of 
Grass Valley, selected various specimens of quartz from Union 
Quartz Mountain, which have been assayed by Mr. Warwick of 
this Cit}q who stated explicitly to Doct. Huddard, that if one 
hundred tons of similar quartz were offered to him in a pulverized 
state, he would be willing to purchase it, after taking an average, at 
the rates specified below. 

Extract from the statement of Mr. Warrick, dated New-York, 
January 29, 1852 : 

No. 1, yields 4 grns. per lb. or 373£ dwts. per ton of 2240 lbs, or $298 perton. 

“ 2, “ 10 “ “ 933^ « “ “ $736 “ 

“ 3, “ 33 “ “ 3080 “ “ “ $2464 “ 

“ 4, “ 46 “ “ 42931 “ “ “ $3464 « 

“ 5, “ 14£ “ “ 1353 “ “ “ $1082 “ 

“ 6, “ 12 “ “ 1120 “ “ “ $896 “ 

Doct. Huddart remarks, that No. 1, 2, and 6, showed no signs 
of gold whatever to the naked eye, previous to smelting; No. 3, 4 f 
and 5, showed gold inkpots, but were by no means what would 
be called, picked specimens. 

The above calculations are based upon the value of gold at $16 
per oz. In giving the dollars to the ton, the cents are omitted. 

With regard to those assays, we cheerfully concur in the remark 
of Dr. Huddart, that no company should predicate their hopes upon 
these tests, because there is no machinery in operation at present, 
competent to extract all the gold, by a process sufficiently rapid to 
justify working under the present high rate of wages. What is now 
required is large and powerful machinery, that will reduce and 
amalgamate one hundred tons, or 200,000 lbs. per day. This being 
the lowest yield that the most sceptical have estimated, will produce 









21 


as shown on page 17, a net profit of nine hundred dollars per day. 
Now, an additional yield of one mill to the pound would increase 
the profits 8200 a day, which, allowing 300 working days, would 
of itself produce an additional profit of 800,000 per annum. Most 
of the mills that have been set in motion have been small, and estab¬ 
lished to crush rich quartz, and if their expectations, in regard to 
the richness of the quartz be not realised, as in many cases they 
cannot be, a failure is the inevitable result. This may discourage 
some, but the fault lies in the mode of working, and not in the 
quartz business itself. 

A large mill with powerful machinery, will reduce and amalga 
mate as much rich, as poor quartz. Hence, the richer the quartz } 
the greater the profits. 


THE TITLE TO QUARTZ VEINS 

Is a subject of great interest to those who are, or who contem¬ 
plate becoming, interested in mining operations in California, and 
particularly to those far removed from that State. Upon the valid¬ 
ity of these titles hinges the success of California mining operations, 
and, to a very considerable extent, the commercial and monetary 
interests of this entire Republic. 

In California, the mineral lands are held by two kinds or classes 
of titles. One class is derived from Mexican grants, each embracing 
tracts of several leagues. There are but few of these, however. 
The other, which is very nearly universal, is derived by settlement 
and occupation, upon the public domain of the United States. To 
the first class of titles the miners, as yet, have paid but little respect, 
and have treated them as public domain, by occupying and work¬ 
ing upon them as their inclination and convenience might dictate* 
The latter class of titles, however, claim universal confidence and 
respect. The opinion prevails universally, that the government of 
the United States will manifest the same liberality and extend the 
same protection to the pioneers and settlers of California, as to the 
emigrants to other new states. The President of the United States 
has recommended this policy. 

A brief review of the circumstances under which the mining region 
was settled, will demonstrate the reasonableness for the preference 
to these titles: 

The discovery of gold in California in 1848, attracted an im. 
mense emigration to those regions best known for their rich auri- 


) i » 



22 


( 


ferous deposits. There were no laws at that time, defining the 
mode by which a title could be acquired or transferred, or the ex¬ 
tent of mineral land or “ claim” an individual might possess, or 
the duties and privileges of those who desired to work them. “ Ne¬ 
cessity,” as the proverb has it, “is the mother of invention.” It 
proved to be the case with the emigrants, who, under these extra¬ 
ordinary emergencies, were forced to adopt measures suited to their 
anomalous condition ; to establish rules for acquiring, holding, and 
transferring mineral lands, and to designate the amount each man 
might possess, and the regulations to be observed in working them. 
These rules partake of the nature of general laws, and differ some¬ 
what in different localities, according to the extent of the auriferous 
deposits, and of their poverty or richness. These laws are few and 
simple, but by years of experience, have been found admirably 
suited to the condition and wants of those by whom, and for whom 
they were created. They carry with them all the solemnity and au¬ 
thority of law. Indeed, so perfectly did this system operate, that 
the last Legislature of California legalized it. Now, the miner’s 
system of locating, holding, transferring and working the mineral 
lands, is no longer sustained by custom and usage only, but by the. 
laws of the State. The statutes provided that in all cases of trespass 
upon -miner’s claims, a Justice of the Peace shall have jurisdiction, 
and is required to award his decision in accordance with the regula¬ 
tions of the miners for the government of that particular locality, 
where the claim in dispute is situated. 

Hence the most perfect confidence is reposed in these titles. For 
individuals and companies, they are regarded as equal to a fee sim¬ 
ple. So great is the confidence in them, that claims valued at 
thousands of dollars, are constantly changing hands. It is safe to 
say that not one hundred suits have grown out of conflicting claims 
since the first discovery of gold in California. 


PRACTICE RATHER THAN THEORY 

Is now required for the successful prosecution of quartz mining. 
It matters but little to the miner, whether, according to the theory 
of one school, the quartz, in a molten state, was ejected up from 
the bowels of the earth, carrying the gold with it, or, according to 
the dogma of another, the gold was deposited into, or created simul¬ 
taneously with the quartz, by galvanic or electrical currents which 


c 



23 


traverse the great subteranean laboratory. One thing is admitted 
as fact by nearly all, which is, that the innumerable quartz veins 
which rib the hills and mountains, is the matrix of native gold, and 
^hat the diluvial action of myriads of ages have distributed the fine 
particles over hill and valley, as they have become liberated from the 
fringes of these veins, while the principal beds or original deposits 
remain undiscovered and locked up in their stoney prisons. 

The capitalists of California have the will but not the means ade¬ 
quate for their developement. Carrying forward those vast im¬ 
provements necessary for ordinary business, requires more capital 
than can be easily commanded. Circumstances over which Cali¬ 
fornians have no control, have conspired to place a value upon 
money unparallelled in the annals of civilization. Canals, sluices, 
and various improvements, have been, and are now being, made 
upon loans at from five to ten per cent, per month. So great, how¬ 
ever, is their confidence in quartz operations, that millions of dol¬ 
lars have been expended in putting up quartz machinery, much of 
which was necessarily very bungling, imperfect, and poorly adapted 
to accomplish the object designed—the system of quarrying and 
raising the quartz was imperfect and expensive, yet these mills 
have made money. 

The mill of the Grass Valley Quartz Mining Company, formerly 
under the direction of the president of this company, paid its origi¬ 
nal cost in sixty days, and since, it has paid large profits, notwith¬ 
standing it has been three times remodelled, improved and enlarged. 

A letter published in the Alta California, in referring to the 
companies working the Mariposa mines, says :—“ Three others I 
have heard of, have divided—one 10, one 11, and one 15 per cent, 
per month on their capitals.” 

The Gold Hill Quartz Mining Company, of Grass Valley, on 
the 10th inst., declared a dividend of ten per cent on their capital. 

Facts and estimates as to what has been, and what may be 
done, might be multiplied to an indefinite extent, but sufficient has 
already been presented to enable the inquirer to form some idea as 
to what may be accomplished by this company. If its success 
depends upon an excellent location, good and extensive vein?, 
abundance of wood and water, a salubrious climate, the heaviest 
and most improved machinery, and a large experience in quartz 
operations, on the part of the Directors, and their determination to 
put forth every exertion to prosecute the work with energy and the 


24 


most rigid economy, then the stockholders will reap a golden har¬ 
vest by large dividends, and increase in the value of stock. 


GRASS VALLEY 

Is not only the focus for quartz mining, but it is equally cele* 
brated for its healthy and delightful climate, and beautiful scenery. 
Its many small valleys clothed with grass, and traversing in 
various directions, and its numerous hills with their smooth 
and gentle slopes and voluptuous swell, studded with lofty pines 
and firs, and branching oaks, and exempt from chapparal, only 
requires the presence of water to convert it into a lake, with 
groups of beautiful islands. It is 2395 feet above the level of the 
ocean—160 miles N. E. from San Francisco, 75 from Sacra¬ 
mento, and 40 E. from Marysville. It is located in Nevada 
County, whose western boundary begins at the foot hills, and runs 
eastwardly between Bear and South Yuba rivers, and extends to the 
summit of the Sierra Nevada. It is not only regarded the richest 
Mining co. in California, but has various other important elements 
of wealth. A daily mail, and two lines of daily stages pass through 
it, from Sacramento to Nevada City, four miles from Centerville? 
in Grass Valley, a village with a population of 2,500, having stores , 
hotels, saw-mills, butchers, bakers, schools, churches, and various 
shops for the prosecution of the mechanics arts, besides some 14 
quartz mills in operation, and others in progress of construction. 
Much of its soil is fertile and mellow, and admirably suited to the 
growth of wheat, barley, oats, rye, grass, and various kinds of 
vegetables. Its extensive forests of magnificent pine, fir, cedar, 
and oak, and its numerous quarries of the most superior building 
stone, are sufficient to satisfy the wants of the State for building for 
many years, and can and will be profitably worked, as soon as the 
rail road shall unite Nevada to Sacramento, the importance of 
which, is now eliciting the most earnest attention of merchants and 
business men, and will, without doubt, be projected and completed 
at a very early day. The wide extent of territory, lying between 
Bear and South Yuba rivers, and extending eastwardly towards 
the summits of the great snowy range, is richly underlaid with 
auriferous deposits or placere diggings, which, if supplied^with water, 
would afford profitable employment to twenty thousand men for a 
score of years. This vast mineral extent of territory, can, and will 



25 


soon be, made available, by the diversion of the waters of the South 
Yuba river, from their banks, and leading them to the summits of 
the dividing ridge, whence the main trunk or canal will pass 
down towards the valley of the Sacramento, distributing in its 
journey supplies on either hand, not only to satisfy the demands of 
“ Cradles,” “ Toms,” “Sluices,” and all the various appliances of 
placere washings, but furnish the means of irrigation to the agricul¬ 
turalist, and motive power for “ Quartz,” “ Grist,” “ Saw,” “ Stone,” 
and other “ Mills,” and ultimately be distributed throughout the 
great valley of the Sacramento, for purposes of irrigation. This 
will be a colossal undertaking, involving an outlay of millions of 
dollars, but it must and will be accomplished, as many works of 
a similar character though less expensive, have already been com¬ 
pleted, and many others projected, and in process of construction. 
And last, but not least, the numerous veins of gold-bearing quartz, 
which interlace her thousand hills, invite the millions of idle capital, 
and our unemployed thousands, to feast upon their golden banquet. 


THE CAPITAL STOCK 

Of “ The Manhattan Quartz Mining Company” has been fixed at 
$150,000, divided into 1,500 shares of $100 each. The hitherto 
proprietors of the gold-bearing localities, aforesaid, contract with 
the company to sell and transfer the said property and to erect 
thereon, at the earliest possible day, the necessary buildings and 
machinery, adequate to the reduction of 100 tons of quartz per day 
of 24 hours, as follows, to wit:—- 

The mill will consist of 36 stamps, after the pattern of John A* 
Collins & Co/s mill, with a few important improvements, and play¬ 
ing in six batteries of six stamps eaeh—amalgamators adequate to 
detect the gold as fast as the ore is pulverised—an engine of suf¬ 
ficient power to drive all this machinery, and an additional power 
of ten horse, to move machinery to reduce the tailings, or the ore 
after it has passed through the amalgamators, when such improve¬ 
ments shall have been discovered. The buildings will consist of a 
stamp-house, 30 by 50 feet—amalgamating-house, 30 by 40 feet— 
an engine-house, 20 by 30 feet—shop for millwright and black¬ 
smith, 20 by 30 feet—dwelling, 20 by 40 feet—office, 15 by 20 
feet—and wood-house, 30 by 60 feet. 

They, furthermore, agree to give their own time, experience and 



26 


labor, to promote the interests of the company, according to their 
best judgment, up to the time the engagements above specified 
shall have been fully performed, and the works of the company 
completed, and running in perfect order. They value the veins, 
aforesaid, at $100,000, and they transfer them to the company for 
this amount of its stock—'agreeing to expend, at least, $50,000 on 
the works, and to turn over the same to the company, free of any 
debt or encumbrance whatever. And should the cost of the works 
reach $70,000, they agree that the excess over $50,000 shall be 
paid by them, and in no case become a charge on the company. 

The property consists of 26 claims of 100 feet on the vein, with 
all its depths and angles—24 claims, 100 feet square—8 claims, 
60 feet square—and 6 claims, 30 by 40 feet. 


[The following - letter is from the pen of Rev. R. Townsend 
Huddart, an Episcopal Clergyman, who spent two years in Cali¬ 
fornia, returning to New York, his former residence, in a late 
steamer. It is copied from the San Francisco Herald of July 25, 
1851.] 

UUARTZ MINING. 

Grass Valley, Nevada Co., July 1G, 1851. 

Editor Herald, —Dear Sir: Having a few hours to spare and a quiet room 
to myself—no trifling luxury in a mining district—I sit down to write you a 
long rambling letter on the subject of the auriferous quartz in this portion of 
the State, where I have passed nearly three months, examining the several 
ledges and veins in the surrounding hills; taking nothing for granted, but 
endeavoring to satisfy my own mind by investigation, as to the quantity and 
quality of the rock, avoiding the extremes of extravagant and wild calcula¬ 
tions on the one hand, or of incredulity on the other. Should you consider 
this communication of sufficient importance to give it a place in the columns 
of your paper, it may assist in spreading information of an interesting and 
useful nature. My remarks for tne present will be confined to this neighbor¬ 
hood and Nevada City, embracing a circuit of about fifteen miles. After a 
residence of more than a year in San Francisco, where my professional duties 
detained me, I determined to visit the mines, more particularly the quartz 
hills, of which 1 had heard various reports, and imagined that I knew a great 
deal; it has been my custom to converse with every intelligent miner I came 
across, and from all the information I could collect from them, as well as from 
reading different newspaper articles, I felt tolerably confident that I was well 
posted up, as we say, on this subject. But I confess that after a short resi¬ 
dence here, and after comparing my previous opinions with those formed from 
personal examination, I arrived at the conclusion that I ought to be ranked 
among a very numerous class of my fellow men, who assume to know much 
with but slight foundation for their knowledge:—in fact, that I had been a 
most erudite “ignoramus.” Before proceeding further, let me give a piece of 
passing advice to all letter writers, and to all intending to return to the 
States, that they will not undertake to speak of the mineral resources of Cali¬ 
fornia, from mere reports; but if they wish to do j ustice to themselves or others, 
let their opinions be given after a careful investigation and actual inspection 
of these quartz regions; for I have no hesitation in saying that those who 
have never visited them, and whose information is acquired by a residence in 
San Francisco or Sacramento, are as little acquainted with the real state of 



27 


things,.as persons in the States or Europe are about our commercial wants, 
our social condition, our geographical advantages, our noble bays, our stately 
forests, our rich productive land, or our healthy and invigorating climate. 

I will attempt no lengthened description of the scenery and beauty of this 
immediate section of country in which I am at present residing ; let it suffice 
to say that there are some as picturesque and lovely valleys lying embosomed 
among these gold bearing hills, as the most fastidious admirer of nature’s 
charms could desire. The whole region abounds in auriferous quartz ; some 
richer in quality than others, but all sufficiently so to pay an ample remuner¬ 
ation for the erection of machinery. Your readers would at once set me down 
as some crazy-pated enthusiast were I to state the amount of gold which may 
be calculated as the product of Nevada county alone; and no doubt the opin • 
ion I am about to advance will be received with astonishment and unbelief by 
some, and regarded by others as chimerical and visionary—still, that does not 
prevent me from giving, as the candid and deliberate conviction of my mind, 
that the quartz of this one section is amply sufficient to supply gold enough 
for the circulation of the whole United States during the next fifty years !— 
Be it recollected that this is but from a single county in the State; what then 
must be the aggregate from other parts of California, equally rich in these 
wonderful depositories of the precious metal 1 

I will not bewilder you or your readers with a formidable at ray of figures 
and calculations based upon evidence of facts, but will simply state that a mill 
with proper machinery, capable of crushing twenty tons of auriferous quartz 
per day, yielding on an average only three cents to the pound will produce a 
profit of at least one hundred per cent, upon a capital of two hundred thou¬ 
sand dollars, and greater in proportion to the limited amount of stock; this 
too, after allowing a liberal outlay for all necessary expenditures, and appro¬ 
priating a contingent fund, to provide for all risks of explosions, breakage, or 
other accidents—wear and tear of machinery, &c. 

It is generally supposed by miners, and by scientific men who have made 
various assays of the different kinds of quartz, that the average value may be 
estimated at from six to eight cents per pound instead of the amount already 
named. Nay more there are companies who calculate upon fifteen to twenty 
cents, and there is onp in Nevada, whose lead or vein is so exceedingly rich 
that they expect a yield of fifty cents to the pound; but when you bear in 
mind that the addition of a single cent will increase the product of gold 
twenty fold, it would swell the amount on these two last calculations to such 
a degree that no credence would be given to the statement. My own impres¬ 
sion is that about eight cents might be a fair estimate, and that with the best 
machinery, and most approved process of amalgamating and saving the very 
fine gold. I have therefore spoken of a minimum , rather than a maximum 
rate ; if these data be co-rect, the profits from a mill of the power mentioned 
will be immense. 

I may also remark that several of the companies at present putting up large 
mills at Grass Valley, calculate to crush from thirty-five to forty tons of quartz 
per day; while others, having less capability, intend to run their engines 
night and day. Now, it is by no means an overstretch of the imagination to 
suppose that within the next three years—particularly when confidence and 
conviction have taken the place of present doubt and mistrust, there will be 
capital enough invested to have not less than two hundred mills erected through - 
out the different parts of the State, each capable of crushing on an average 
twenty-five tons per day ; yielding from $00 to $100 for the 20 cwt., according 
as the richness of the quartz may vary from three to eight cents per pound. 
Now, then, let your matter of fact man of figures amuse himself for an Hour in 
making these difficult calculations. I think the result will somewhat astonish 
him, at least on papa —time alone must prove the truth of the problem. 

In alluding to the vast profits to be derived by companies from this source, 
I wish to be understood as premising that suitable machinery, favorable loca¬ 
tion of the mine, skilful engineers, sensible directors, and honest manage¬ 
ment, will be required to make investments pay a large dividend; with these 
advantages combined, the most sanguine expectations may be realized; without 
them, the results will be more or less doubtful. 


28 


The drawback now upon quartz operations is the want of capital, compared 
with the unlimited opportunities and inducements for investing. This arises 
most probably ftom a suspicion in the minds of moneyed men, that these mat* 
ters have fallen into the hands of speculators, and consequently that the in¬ 
vestment is not a safe one ; but surely the abuse of any thing does not prove 
it to be worthless. How many banking institution, insurance companies, 
railroad companies, mining associations, et id genus omne , have had their day 
of ill accounts in the older States, and by inefficient or desperately dishonest 
management on the part of those chiefly instrumental in getting them up, 
have brought ruin upon many a family, and discredit upon similar enterprises 1 
With all this, capitalists have not been deterred from again and again sub¬ 
scribing to such undertakings Why should we expect in California to es¬ 
cape the consequences of that greedy thirst for sudden gain which, like a 
raging fever, has preyed upon the moral vitals of thou ands who have come 
among us inducing them to adopt every conceivable mode of obtaining 
wealth without regard to the means used 1 How could it be otherwise than 
that hundreds of the motly crowd of needy adventurers who have flocked to 
the land of promise, would eagerly sieze upon just such a tempting bait to 
entice their victims as dazzling specimens of auriferous quartz ? It seem as 
if men were attacked wi h a golden mania which deprives them of the ordina¬ 
ry powers of prudence, reflection and caution, leading them into the wildest 
speculations, set on foot by unprincipled, cunning knaves, the result of which 
is the certain loss of money invested, and denunciations, loud and deep, 
against the originators ofthese schemes. It is well known that several mining 
bubble operations have burst up in various parts of the State during th f - past 
year, and so notorious has been the conduct of the principal actors, that it 
has not only thrown a damper over quartz mining, but when men of undoubt¬ 
ed veracity and honor have attempted to get up a company, they have been 
met on the very threshhold with the taunt of some delinquent who had lately 
duped others. This state of things, however, cannot last; the evil will work 
its own cure ; gradually, confidence will be restored, capitalists will associate 
themselves together and take into their employ none but tried and honest indi¬ 
viduals to manage the concerns of any crushing mill which may be erecied by 
them, and with the requisite machinery, as well as steady perseverance, there 
cannot exist a doubt of larger fortunes being gained by investments in quartz 
mining than by any other means in California. We must be prepared to hear 
the doleful cry of a few croakers, of whom a number will be found in this country 
as in every community, but that should not deter men of sense from investiga¬ 
ting this subject with calm and prudent determination. They will be better 
satisfied after such examination, and better able to judge of the boundless 
wealth which exists in California. 

Like all other great and novel enterprises, that of extracting gold from 
quartz presents at first many difficulties to be overcome by the pioneers in the 
work; the whole thing is new to us, and must naturally be attended with 
obstacles and imperfections at the outset; as a matter of course various ex¬ 
periments will be tried ; much expense and sometimes loss be incurred in them. 
Each succeeding mill with its machinery will be constructed with the latest 
improvements, and so the operations will progress, until a similar degree of 
excellence is attained in this novel branch of industry and mechanical skill 
as has been reached in the construction of steamships, locomotives cotton 
mills, printing presses, or in the architecture of the present day compared with 
that of fifty years back. We are now but in our infancy as regards mining; 
indeed it may rather be said that mining is only about being commenced in 
California. Whatever amount of gold has been obtained hitherto, being 
literally no more than the scratching of the earth’s surface, when compared 
with the treasures which are yet to be discovered. 

I write to you, my dear sir. as to an old friend, and one who, I would hope, 
has full confidence in the sincerity of my expressed opinion, and a personal 
knowledge of my character as a man of calm, prudent judgment and common 
sense, who would not advance any statementthat he did not honestly believe 
to be reliable and worthy of consideration among his fellow citizens. I do not 
profess to be either a geologist or a scientific man, but have looked into this 


29 


matter with the same degree of careful attention as a merchant would use in 
his business transactions, or a lawyer in his profession : the result of that in¬ 
vestigation I send you, and if deemed worth a place in your columns, it will 
give me sincere pleasure to be thus instrumental in spreading some informa¬ 
tion before the public on a subject about which there is very little known, or 
understood, and one having so important a bearing upon the future interests, 
prosperity, and welfare of our adopted State. 

Very truly, your friend, R. T. H. 


From the San Francisco Morning Post , Oct. 13, 1851. 

QUARTZ MINING. 

u Quartz mining in this country is no longer an experiment. After the 
expenditure of a vast amount of capital and labor, under the exciting hope 
which success, if attained, held out, the problem has been demon trated, and 
the field of enterprise almost, if not quite, co extensive with the mining region, 
exhibits a busy scene of preparation for this mode of mining by hundreds of 
companies, of associated capital and labor, all along the range of auriferous 
veins. Any amount of capital is easily commanded by these enterprises, not¬ 
withstanding the high rate of interest and the great demand for it in other 
pursuits. No other investments are sought with half the avidity, and ‘ claims’ 
and stock in the crude form of joint interests, although not in a situation to 
yield any returns without the additional expenditure of much capital, in the 
erection of machinery, command a ready sale, and, in many instances, what 
appsar to be extravagant prices j and under the impulse given to these 
enterprises by the practical success of a few companies who have got pro¬ 
perly to work, within the last two months, the value of claims has rapidly 
advanced. 

“ There has, consequently, been a corresponding demand for machinery, and 
the large number of steam engines which, a few months ago, were in our har¬ 
bor, almost valueless, are all, even those of the smallest form, taken up, and 
there is still an eager demand for more; and many orders have gone to the 
eastern cities, from all portions of the mines, for engines, as well as for im¬ 
proved machinery and castings. A new and flourishing branch of manufac¬ 
tures has sprung up under this demand, and there are now, in this city, three 
or four foundries, with machine shops attached, all full of employment at the 
most lucrative rates. Among all the conceivab e models invented and applied 
to the purpose of crushing the rock, although none are considered perfect, an 
advance has been made to something like a standard. 

“ Those which have proved worthless, having served a good purpose to all but 
their owners, will be supplanted by improvements which they have suggested, 
and which will, in turn, be cast aside for more perfect inventions, in this 
way, as in all other improvements, the first enterprises in quartz operations, 
which so generally proved failures, have furnished valuable lessons of experi¬ 
ence, which have led to the success of others ; so that, what was the folly and 
ruin of many of the pioneers in the businees, points out the road to success and 
fortune to those who came after them. Among other mistakes to be avoided in 
future, it is evident, by experience, that most of the engines and machines are 
too small; for while the difference in the cost of erecting and running ma¬ 
chines is small, the profits depending upon the amount of rock reduced will 
be vastly different in the two cases. Especially does this difference become 
important, where the auriferous rock to be reduced is not rich, in which case 
it is easy to demonstrate that the yield which would not pay expenses in the 
one case, would show a handsome profit in the other. For instance, an engine 
often horse power, extracting from a given quantity of rock, $*200 per day, 
would scarcely pay any profits while one of forty horse power, requiring but 
little more daily expenses, would produce $800 or $1000. There is the same 
difference in this case that there is in running the largest and the smallest 
class of steamers on long sea voyages; one pays large profits, while the other 
will not pay charges. 




30 


“ Another very common error which experience is pointing out. is the mis¬ 
conception of the cost of erecting mills of the requisite power, many supposing 
that tne principal expense is the purchase of engines and machinery, and that, 
their enterprise is almost accomplished with the landing of these at some con¬ 
venient point of navigation. Whereas, the estimates of some who have the 
most experience in the business, and who have encountered and triumphed 
over the many unforeseen obstacles, fix the additional charge of transporta¬ 
tion into the mountains, of mechanics’ and laborers’ wages at present prices, 
and ot the multifarious additional articles of materials, tools, &c., &c., which 
will be required to put a machine of 30 horse power in running condition, at 
not less than $25,000 which is three or four times the prime cost of the ma¬ 
chinery. True it is. that, in many cases, where numbers have formed com¬ 
panies of associated labor, the greater portion of this work may be accom¬ 
plished without the actual expenditure of cash ; but it must be remembered 
that this must be done in a country where labor is capital, emphatically and 
in a stronger sense than in any other country under the sun. And there is 
little prospect that there will be any reduction in the prices of labor, in this 
country, for the next twelve months. Notwithstanding the fact that, within 
the last twelve months, the cost of transportation into all parts of the mines, 
has been reduced about sixty per cent., with a corresponding reduction in 
most of the prime articles of subsistence of miners, the price of labor has ad¬ 
vanced in an inverse ratio. When the great flood of last years’ immigration 
spread itself in the valleys, and cities, and towns of California, labor was easily 
obtained at three dollars per day. But now that an ebb has taken place in 
the tide, relieving the pressure of competition, and, more than all, that a vast 
amount of capital, instead of pursuing the old course, and teeming into our 
cities and going to the Atlantic, has found a lodgment in these thousands of 
enterprises all along the auriferous veins, all demanding labor to render them 
available, the rate of wages has advanced to $6 and $8 per day, and is not so 
easily obtained at that. The price of labor, therefore, is nowthe chief obstacle 
to encounter in the prosecution of these enterprises. And this is, after all, a 
happy state of affairs, where labor maintains so successful a competition with 
accumulated capital, and is sufficient to satisfy any one, that this is the best 
country in the world for the laboring man—the best market for real muscle— 
and that it is really better now than at any former period. 

“ Such successive improvements in machinery have been made as to give 
entire satisfaction as to the quantity of rock reducible in a day, and the chief 
desideratum now remaining is a thorough process and a more perfect appara¬ 
tus for amalgamation, to save the very considerable waste of gold now sub¬ 
mitted to in the mode at present in use for its collection and separation from 
the pulverized rock. Among the numerous plans and experiments now in re¬ 
quisition by an inventive genius, which leaves nothing so desirable unaccom¬ 
plished, necessity will, doubtless, soon supply the invention. Of this subject of 
the improved models of machinery, and the best modes of applying the power, 
and of the results of operations now going on, we shall have occasion to speak 
more particularly in a short time. 

“ As many as fifty establishments will be in operation in various parts of the 
State in the course of the approaching winter, and the mountains and val¬ 
leys are already beginning to resound with the clatter of cams and the 
thunder of pestles. There are two establishments, well equipped with heavy 
engines and machinery, now just going into operation, of which the results 
will be made known to the public, which will be of such a satisfactory char¬ 
acter as will give a still greater impulse to this now leading branch of mining 
in California. 

“ Once in successful operation, the stock of such establishments as are pro¬ 
perly equipped and organized on the joint stock principle, will become a circu¬ 
lating medium, to a very considerable extent, in the State, and a recognized 
security in our stock market, as well as those of the Atlantic States. As an 
evidence of this we may mention that there is already a demand growing up 
for the stock of one of the companies alluded to above, which is a joint-stock 
one. And there is no reason why this should not be, when there is such an 
active demand for the naked claims.” 


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(Formerly owned by John A. Collins & Co.) 





















































































































































































































































































































































































































GRASS VALLEY QUARTZ MINING COMPANY'S WORKS 

(Formerly owned by John A. Comjns fir. Co.) 






















































































































































































































































































